As we see the advancement in the technology all over the world we also know that people are looking for advancement in all the things they are regularly do in day-to-day life. One of the important requirements in this modern age is the banking services. When people are involved in giving and receiving money they prefer for a faster service to avoid the hassle of visiting an individual in person to handle their monetary transactions.
The introduction of ‘Payment Service Provider’(PSP) has made the life of consumer much easier by automating the process of transferring money from one part of the world to other part in very less time compare to old days.
What is payment service provider?
With reference to the definition from Wikipedia, the definition of a PSP is “a company that offers online shopping services or accepting electronic payments by a variety of payment methods including credit card, bank based payments such as direct debit, bank transfer and real time bank transfer based on online banking”
The meaning of this refers to making a payment through a third party that enhances merchants to accept a single or a multiple line of payments or transactions through one channel.
How does PSP work?
The PSP tie up with various banks and their payment processors. This enables them to accept the online payments of the merchants through the payment gateway issued from the respective bank for processing of payments. The transaction details are reflected while processing the same via the payment gateway.
In this Digital age, payment service providing companies are adopting various steps in proliferating the ways of payments especially through usage of mobiles. We see an increased usage of plastic money (ATM/Debit/Credit Cards) by people to make the payments easily through swipe machines rather than carrying the physical cash notes in wallet or their cheque book.
Cost Details to obtain the license
If you are planning to setup a PSP business in Dubai, here are the details about obtaining the license:
|Court Fees||Approx. AED 2000|
|Market Fees||2.5% of Annual Rent|
|License Fees||Approx. 9000|
To obtain this license, you need to have an office. It cannot be obtained for shared offices or desk space. The license will require an external approval from the Central Bank however it requires a deposit. This can be confirmed by them only upon the approval of the business plan after it is submitted.
There will be additional charges for the Approval from the Central Bank.
This blog is written by Ms. Florine, Senior Business Advisor at Flyingcolour Business Setup, Accounting & Tax Services in Dubai & across UAE . Feel free to call us for more info regarding setting up a PSP business. You can also send your inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.